All Forum Posts by: David Gonzalez

At many Apartment Communities they accept savings as income. The thought process is that neither the job nor savings is guaranteed it's just a buffer. A high credit score isn't always a guarantee for a good tenant. if you are inclined to say yes to her ask her for a higher deposit.

Yes you can but you should think about your goals and if you have the temperment to be a landlord. From what I have read (and informally calculated at Apartment Communities I have worked at) is that it takes ~4 hrs/month per unit to manage. Starting out assume it will take longer. Also don't forget to buy factoring you will one day hire a Property Manager.

I would first research your state laws. It might be illegal! Also I would look at how you establish the relationship and communicate with your tenants. If it's a challenge to be collecting the money every month you are probably not communicating well. They have the money you are just not a priority!

Hello Kyle, I am in Property Mananagement my self and here is how people go about becoming property managers of Apartment Communities. 1) Leasing Consultant/Agent --> Assistant Property Manager --> Property Manager 2) Residential Property Manager --> Property Manager 3) Resident Manager --> Property Manager 4) Management Expierence --> Property Manager If you go leasing consultant/agent route I would suggest getting a job with 300+ units. You will be busy and learn a lot. Any thing less and you will have times you are bored and unproductive. I would also suggest you look into temping. Great way to get started and to start building contacts. If you decide to go directly to Property Manager role I would start with a smaller community. If resident manager with little to no pay stick to community less than 20 units. If you are a property manager of Apartment community than I would choose one less than 100 units unless you are comfortable managing than less than 200 units. As for certifications some require expierence + class while others require just classes. I would start getting one that just requires class so you can demonstrate that you know tenant land lord law. CAM is a good certification but requires 12 months of work. I would look at local Apartment Associations and local Realtor Associations for other types of certifications. If this is a career you definitely love and want to do I would suggest you get a part time resident manager position of a small community, and work as a full/part time leasing consultant at a large community. Do this for a year and you will be able to show you can lease and manage property. Best of luck!

I would check to see the type of purchase agreement all parties accepted. Here in California CAR has several types of purchase agreements. We have one for single family homes and one for investment properties. I would check to see what type is being used for your transaction. If they can't kick them out I would suggest that you either negotiate credits to cover the cost of a potential eviction or save the money for one. Also make sure the tenants sign the estoppel. It will outline rent deposit and terms of lease.

Before you raise rent you will need to know the following things: 1) Is the Tenant on a month to month or a fixed term lease (defined end term)? 2) Is the property on Rent control? 3) What is the current Market Rent? First of all I am not a lawyer and would suggest legal advice from a lawyer. This is just what I have learned over the years. If it's Rent Control hire a lawyer. You want to make sure you do every thing to the T. If the home is on a lease no formal notice is required (unless it says so on the lease). I would suggest you provide the Tenant a notice 60 days before the rent increases as a courtesy and to allow them enough time to give notice. If the lease is Month to Month you will need to give either a 30 day or 60 day notice depending on the rent increase %. Another BP member posted info from California about which one to use. If the Tenant is Sec 8 check with the local housing authority what they require. My area requires 90 day notice. As for the rent I would look at comps like your property and local Apartment Communities to determine fair market rent. I would suggest that you raise their rent to a little bit less than Fair Market Value. So lets say the rent is currently at $1000 and FMV is at $1500. I would raise rent around $1300. If at FMV they will either want to have you fix things in the home to make it comparable to a new rental home or they will leave. Also I would suggest you have them sign a year lease. You don't want them to leave you in winter when the market is dead.

First of all I would suggest you never give up on your dreams! Life is too short. Second I would suggest you call the listing agent (after it closes) and ask them directly why they choose the current offer and not yours. Was it price? Terms? You will learn a lot talking to them and can make better offers. Also I would suggest you keep in contact with the Agent after the other offer was accepted. As an agent in a hot market you would be surprised how many deals I see fall. They may have not accepted your deal the first time but it would look more attractive after they dealt with a flaky buyer. Sell your self that you can close the deal! One more thought. Focus on a specific market. This will allow you to really understand the value of that home and invest in marketing to get off market deals. Perhaps some of your deals were a better deal than what you calculated and would have allowed you to make a higher offer and get the deal. Best of luck! Also kudos to you for MASSIVE ACTION! You should pat your self in the back for that.

Hello fellow BP Members!

I need your help with a recommendation. I believe it is called a Virtual PBX.

I am looking to set up a phone system where by Tenants/Owners call and they are  taken to a menu where they choose an option (i.e. 1 for Tenants, 2 for Owners 3 for Future Tenants etc) with the caller forwarded to the appropriate person/department. 

Looking for something that is cloud based, easy to set up and can scale as my business grows.

Any suggestions on software and/or best practices on how to set it up would be appreciated.

@Craig Garrow how did you find Property Management Leads on the cheap? When starting out how did you limit property owners concerns about being new to the business? 

I use Buildium and I like it a lot! The company is really investing in developing their software so it will only get better with time. 

In the Residential Property Management Industry there are 3 big players in the field: AppFolio, Buildium, Propertyware. The following is an extremely brief breakdown of the 3 players.

AppFolio is the industry leader and have a very robust system. Unfortunately they are expensive Cost: $200/month plus set up fee for up to 200 units max. Additional units cost more. Will need to check company for more details. Company aims to be Industry Leading Property Management software for Mid to Large Property Management Companies/Portfolios.

Propertyware is a very robust system and way cheaper. Cost ~$125/month for ~80 units plus a $400 "Migration Fee". A friend of mine who runs a large property management company likes them a lot and would have chosen them over AppFolio if he was starting his company today. They are not the industry leader but they "borrow" the ideas AppFolio creates and implement them in their own system. 

Buildium is affordable and has great support! Cost: $60/month for up to 60 units. Prices average $1/unit/month for every unit above 60. They are improving the software every day and the software is easy to use and requires minimal customization. 

Recommendation: 

For people with a smaller portfolio and/or budget: Buildium.

For people looking to grow into a large Property Management Business: Propertyware or AppFolio (if $200/month is okay)

For people who have lots of units: AppFolio.